TPG Inc. and UnitedHealth Group Inc. are among the suitors seeking to buy Surgery Partners Inc., according to people with knowledge of the matter.
The buyout firm and health insurance company have separately expressed preliminary interest in Surgery Partners, according to the people, who asked not to be identified discussing confidential information. Surgery Partners is also drawing interest from other private equity firms and strategic bidders, they said.
Shares in Surgery Partners rose as much as 17% on Friday. The stock was up 12% at 1:16 p.m. in New York, giving the company a market value of about $4.1 billion. Bain Capital is currently the largest shareholder in Surgery Partners with a 39% stake.
Deliberations are in the early stages and there’s no certainty they’ll result in a transaction. Representatives for Bain and TPG declined to comment, while representatives for UnitedHealth and Surgery Partners didn’t immediately respond to requests for comment.
Surgery Partners has been working with a financial adviser as it explores options including a potential sale, Bloomberg News reported last month.
Founded in 2004, Surgery Partners operates more than 180 locations — including surgery centers, surgical hospitals, physician practices and urgent care facilities — across the US. The company went public in in 2015 and merged with National Surgical Healthcare in 2017, at which point Bain acquired HIG Capital’s stake in Surgery Partners.
In May, Surgery Partners said it expected to generate at least $3.05 billion in annual revenue and adjusted earnings before interest, taxes, depreciation and amortization of at least $505 million.
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